Ruth Coppinger
Question:261. Deputy Ruth Coppinger asked the Minister for Finance the amount that could be raised by applying the standard rate of VAT of 23% to financial services. [25340/16]
View answerFriday, 16 September 2016
Questions (261)
Written answers
The supply of financial services is VAT exempt across all EU member countries in accordance with Article 135 of the EU VAT Directive. In order to impose VAT on financial services, this would require a change to the VAT Directive applicable to all Member States. Ireland could not make such a decision unilaterally.
I am informed by the Revenue Commissioners that the information provided to them on tax returns does not require a customer to split their turnover across different economic sectors or provide information on the types of transactions or activities provided to different sectors. Therefore it is not possible at present to identify the supplies that would potentially be liable to VAT on financial services or to estimate the potential for net yield if such services were charged to VAT at 23%.